NOT FOR DISTRIBUTION
Header cover image

China Zhongwang Holdings

Market Cap

HK$13.5b

Last Updated

2021/04/16 10:27 UTC

Data Sources

Company Financials +

Executive Summary

China Zhongwang Holdings Limited, through its subsidiaries, develops, manufactures, and sells aluminum extruded products in the People’s Republic of China, Germany, the United States, and internationally. More Details


Snowflake Analysis

Very undervalued with high growth potential.


Similar Companies

Share Price & News

How has China Zhongwang Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1333 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: 1333's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

1333

4.0%

HK Metals and Mining

0.7%

HK Market


1 Year Return

0%

1333

123.4%

HK Metals and Mining

28.0%

HK Market

Return vs Industry: 1333 underperformed the Hong Kong Metals and Mining industry which returned 125.9% over the past year.

Return vs Market: 1333 underperformed the Hong Kong Market which returned 28.5% over the past year.


Shareholder returns

1333IndustryMarket
7 Day0.5%4.0%0.7%
30 Day-12.8%2.2%-1.2%
90 Day15.0%24.8%1.8%
1 Year0%0%129.4%123.4%33.4%28.0%
3 Year-54.1%-60.0%33.7%23.3%8.1%-3.9%
5 Year-41.6%-54.0%129.2%104.7%56.5%28.9%

Long-Term Price Volatility Vs. Market

How volatile is China Zhongwang Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Zhongwang Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1333 (HK$1.84) is trading below our estimate of fair value (HK$11.38)

Significantly Below Fair Value: 1333 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1333 is good value based on its PE Ratio (6.1x) compared to the HK Metals and Mining industry average (9.7x).

PE vs Market: 1333 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1333 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 1333 is good value based on its PB Ratio (0.3x) compared to the HK Metals and Mining industry average (0.7x).


Future Growth

How is China Zhongwang Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

39.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1333's forecast earnings growth (39.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 1333's earnings (39.7% per year) are forecast to grow faster than the Hong Kong market (18.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1333's revenue (27% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 1333's revenue (27% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1333's Return on Equity is forecast to be low in 3 years time (9.4%).


Past Performance

How has China Zhongwang Holdings performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1333 has high quality earnings.

Growing Profit Margin: 1333's current net profit margins (8.8%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: 1333's earnings have declined by 0.3% per year over the past 5 years.

Accelerating Growth: 1333's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1333 had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (27.4%).


Return on Equity

High ROE: 1333's Return on Equity (5%) is considered low.


Financial Health

How is China Zhongwang Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1333's short term assets (CN¥40.9B) do not cover its short term liabilities (CN¥48.3B).

Long Term Liabilities: 1333's short term assets (CN¥40.9B) do not cover its long term liabilities (CN¥42.7B).


Debt to Equity History and Analysis

Debt Level: 1333's debt to equity ratio (177.3%) is considered high.

Reducing Debt: 1333's debt to equity ratio has increased from 141.6% to 177.3% over the past 5 years.

Debt Coverage: 1333's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1333's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

What is China Zhongwang Holdings's current dividend yield, its reliability and sustainability?

11.85%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1333's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1333's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1333's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1333's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1333 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1333's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Changqing Lu (44 yo)

5.08yrs

Tenure

CN¥4,726,000

Compensation

Mr. Changqing Lu has been the President of China Zhongwang Holdings Limited since March 22, 2016 and served as its Joint Company Secretary from December 30, 2008 to March 22, 2016 and also served as its Vi...


CEO Compensation Analysis

Compensation vs Market: Changqing's total compensation ($USD724.69K) is about average for companies of similar size in the Hong Kong market ($USD575.67K).

Compensation vs Earnings: Changqing's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1333's management team is considered experienced (5 years average tenure).


Board Members

Experienced Board: 1333's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Zhongwang Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Zhongwang Holdings Limited
  • Ticker: 1333
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: HK$13.464b
  • Shares outstanding: 7.07b
  • Website: https://www.zhongwang.com

Number of Employees


Location

  • China Zhongwang Holdings Limited
  • No. 299, Wensheng Road
  • Liaoyang
  • Liaoning Province
  • 111003
  • China

Listings


Biography

China Zhongwang Holdings Limited, through its subsidiaries, develops, manufactures, and sells aluminum extruded products in the People’s Republic of China, Germany, the United States, and internationally. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 10:27
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.